Mobile operators threaten to close their stores and demand a 50% reduction in rent

Mobile operators in Russia are threatening to close their stores if shopping centers do not reduce rents. According to Kommersant, they are threatening to reduce rents by more than 50%.

All the retailers demand lower rents, but the operators are asking for larger discounts than others. Specialists believe that the owners of the premises will not go for it, because new applicants are quickly found for the space. In this situation operators will close 15% of 18 thousand outlets by the end of the year.

The source writes that one of the landlords received a letter from MTS this week, in which, referring to the “reduction of the customer flow and turnover up to 45-63%”, it was proposed to reduce the rent to 69.3 thousand rubles per month (the original price is not specified). Otherwise the MTS salon could be closed.

David Borzilov, Megafon’s sales director, confirmed that the reduction in customer flow is typical of the entire market. Many landlords understand the situation and are going out of their way: “In the second quarter of 2022 the rates were reduced and the discounts were from 20%”. Tele2 also insists on revising rental rates: “They are overstated and do not take into account the new realities.

“Vimpelcom and Svyaznoy confirmed that they regularly negotiate with the owners of the premises to adjust rental rates.

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